The Effect of Inflation on Financial Development Indicators in Iran (2000–2015)
Inflation and financial development are among the factors that influence economic growth and the interaction between them is a major issue in developing countries. The aim of this paper is to investigate the effect of inflation on financial development indicators in Iran using seasonal data over 200...
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| Format: | Article |
| Language: | English |
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Sciendo
2017-08-01
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| Series: | Studies in Business and Economics |
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| Online Access: | https://doi.org/10.1515/sbe-2017-0021 |
| _version_ | 1818343570274254848 |
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| author | Hami Mahyar |
| author_facet | Hami Mahyar |
| author_sort | Hami Mahyar |
| collection | DOAJ |
| description | Inflation and financial development are among the factors that influence economic growth and the interaction between them is a major issue in developing countries. The aim of this paper is to investigate the effect of inflation on financial development indicators in Iran using seasonal data over 2000-2015. To achieve the research objectives, time series data were collected from World Bank and seasonal inflation rate, with 5 financial development indicators were used to measure the research variables. Then I applied Johansen Co-integration Test and Vector Error Correction Model to estimate the proposed model. The results show that inflation has a negatively significant effect on financial depth and also positively significant effect on the ratio of total deposits in banking system to nominal GDP in Iran during the observation period. Also the existence of an equilibrium relationship between inflation and other 3 indicators of Iran`s financial development used in this study was rejected. |
| first_indexed | 2024-12-13T16:32:41Z |
| format | Article |
| id | doaj.art-91300c8f52c8498cabd15d8d0eae5b3d |
| institution | Directory Open Access Journal |
| issn | 2344-5416 |
| language | English |
| last_indexed | 2024-12-13T16:32:41Z |
| publishDate | 2017-08-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj.art-91300c8f52c8498cabd15d8d0eae5b3d2022-12-21T23:38:28ZengSciendoStudies in Business and Economics2344-54162017-08-01122536210.1515/sbe-2017-0021sbe-2017-0021The Effect of Inflation on Financial Development Indicators in Iran (2000–2015)Hami Mahyar0Mazandaran University of Science & Technology, Babol, IranInflation and financial development are among the factors that influence economic growth and the interaction between them is a major issue in developing countries. The aim of this paper is to investigate the effect of inflation on financial development indicators in Iran using seasonal data over 2000-2015. To achieve the research objectives, time series data were collected from World Bank and seasonal inflation rate, with 5 financial development indicators were used to measure the research variables. Then I applied Johansen Co-integration Test and Vector Error Correction Model to estimate the proposed model. The results show that inflation has a negatively significant effect on financial depth and also positively significant effect on the ratio of total deposits in banking system to nominal GDP in Iran during the observation period. Also the existence of an equilibrium relationship between inflation and other 3 indicators of Iran`s financial development used in this study was rejected.https://doi.org/10.1515/sbe-2017-0021inflationfinancial developmentiranjohansen co-integration testvector error correction model (vecm) |
| spellingShingle | Hami Mahyar The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) Studies in Business and Economics inflation financial development iran johansen co-integration test vector error correction model (vecm) |
| title | The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) |
| title_full | The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) |
| title_fullStr | The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) |
| title_full_unstemmed | The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) |
| title_short | The Effect of Inflation on Financial Development Indicators in Iran (2000–2015) |
| title_sort | effect of inflation on financial development indicators in iran 2000 2015 |
| topic | inflation financial development iran johansen co-integration test vector error correction model (vecm) |
| url | https://doi.org/10.1515/sbe-2017-0021 |
| work_keys_str_mv | AT hamimahyar theeffectofinflationonfinancialdevelopmentindicatorsiniran20002015 AT hamimahyar effectofinflationonfinancialdevelopmentindicatorsiniran20002015 |